The Canadian government has introduced new tax measures that will affect Canadians in 2024. These measures include the elimination of some short-term rental deductions, new alternative minimum tax rates, and changes to Canada Pension Plan (CPP) contributions. The elimination of some short-term rental deductions was announced in the Fall Economic Statement (FES) and kicks in on Jan. 1. The federal government is now eliminating that tax break, denying operators of short-term rentals any income tax deductions for expenses if they operate in provinces or municipalities that have banned short-term rentals. In provinces that still allow short-term rentals, operators that are not compliant with local regulations and laws will also be denied the deduction.
The GST/HST exemptions will also be affected. The federal government announced it was taking the GST/HST off “professional services rendered by psychotherapists and counselling therapists.”
These changes are not expected to have a significant impact on most individuals, unless they’re high-income earners.
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